OMEGA Diagnostics has announced it could double the size of its Scottish workforce if new allergy and HIV testing products sell as well as expected.

The company, based in Alva, Clackmannanshire, said it was getting closer to bringing the products to the market as it unveiled a 25% jump in half-year profits.

A preferred manufacturing protocol for the CD4 testing kit, based on technology developed by the Burnet Institute in Australia, has been selected with Omega still hopeful the first sales can be made before the end of March next year.

The kit determines if an HIV patient's white blood cell count has fallen to a level where retroviral drug treatment is needed without a need for laboratory testing.

It is thought to have generated a great deal of interest from non-governmental organisations working in developing countries.

Omega said: "Considerable effort has been spent on pre-launch marketing activities including exhibitions and meetings with key opinion leaders in the global health community generating significant interest.

"It is this interest which is expected to translate into significant sales."

A further update on getting CD4 ready for the market is expected before the end of the year.

Andrew Shepherd, chief executive, said: "Demand is high from both a [non-governmental organisation] and a commercial basis.

"Everyone is expecting good things from this product and it has been termed a game-changer by many of the key opinion leaders [in the sector].

"It is difficult to predict exactly what will happen but we believe the demand is there as the product meets a currently un-met clinical need."

Separately, Omega's allergy tests for the IDS-iSYS system, which is used in laboratories around the world, is also moving forward.

Omega said 13 allergens have been optimised for the system, with a further 11 in the pipeline.

The company still believes it is on course to provide the 40 to 50 allergen tests it wants to go to the market with in its next financial year. Jag Grewal, sales and marketing director, said: "Come early New Year, we should be able to nail down that date [for launch] but we have revenues [pencilled in] for our next financial year and are very confident of hitting them."

Kieron Harbinson, finance director, said the launch of CD4 and iSYS products will see a need to grow headcount at Alva, which stands at 34, over the next few years to meet the anticipated manufacturing demand.

He said: "In the next six months it will be less than 10, but as we gear up you can imagine they would come on in groups of 10.

"In the next two to three years, you could be looking at 30 to 40 positions once we have a high-volume assembly function requirement."

In the six months to September 30 this year, Omega saw turnover edge upwards from £5.53m to £5.59m, while an improvement in margins led to pre-tax profits rising 25% from £131,591 to £164,480.

Revenue was flat in Germany and down in the UK but rose across the rest of Europe.

Mr Grewal highlighted India, Brazil and Indonesia as among the places Omega is expecting growth.

The food intolerance division was the strongest performer, posting a 9% rise in revenue from £2.06m to £2.25m while the allergy and autoimmune segment saw turnover rise 2% from £2.02m to £2.07m.

Infectious diseases and other products dropped 12% from £1.44m to £1.28m partly as a result of fewer bacterial tests and the banning of blood-based TB tests in India.

Mr Harbinson pointed out Omega has more than £3m of cash on its balance sheet but ruled out acquisitions saying the focus is on delivering CD4 and iSYS.

FinnCap's Keith Redpath kept a 25p buy target on Omega's share price and said: "The progress of the development of the automated allergy assays is very encouraging.

"The launch of these will mark Omega's entry into a global market estimated at [more than] $450m."

Shares in Omega closed up 0.75p, or 5.4%, at 14.75p.